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Delta is a forward looking statistical estimate! While an estimate and not guaranteed it is something I use on every trade and have for many years of successful trading and expect most traders use it as well.
As it is a statistical estimate I think it is far more useful than watching for the chart to be up or down. When a stock is moving up or down it is just as likely to continue up or go down and there are no stats behind this but simply luck.
If you're a math person the link below shows how it is dervived.
https://robinhood.com/us/en/support/articles/changes-due-to-recent-market-volatility/
> If you already hold a greater number of shares or contracts than the limits listed above, your positions will not be sold or closed. However, you will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit.
hmmm. So, it sounds like you could buy 5 deep ITM calls on nearest expiry, immediately exercise into 500 shares, be left with 0 calls; rinse and repeat.
Personally I never stop selling. Do insurance companies stop underwriting car insurances as peak driving season approaches? I think not.
You gotta read this guy and follow the TOMIC framework.
https://www.amazon.ca/Option-Traders-Hedge-Fund-Framework-ebook/dp/B00844NXC6
Oh yeah, the market's already done all the hard work of calculating and pricing in the risk for you. All you gotta do is manage the risk of your own position.
I'd suggest getting started with Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits by Dan Passarelli as well as his Options Bootcamp podcast.
In the Money on YouTube also has some pretty good videos for beginners.
For those who are still with RH, here's the official page on the limits:
https://robinhood.com/us/en/support/articles/changes-due-to-recent-market-volatility/
The thread below is a mess. Robinhood is self-clearing. That's why they had to raise $1 billion basically overnight to make sure they remained solvent through settlement.
https://robinhood.com/us/en/support/articles/whats-clearing-by-robinhood/
The option most likely would be exercised at close by Robinhood unless you think the person on the other side doesn’t have $100 in buying power.
“We’ll automatically exercise any option in the money if your account has the required buying power.”
https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/
Options as a strategic investment is also very good and covers so many different strategies. It’s 900 pages long, so I’d use it more as a reference for diving deeper into specific strategies rather than a sit down and read it all the way through kind of book. Options as a Strategic Investment: Fifth Edition https://www.amazon.com/dp/0735204659/ref=cm_sw_r_cp_api_glt_fabc_F2Z2R19YXVKYXCZCPARF
You are wrong.
https://www.schwab.com/ira/roth-ira/withdrawal-rules
You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, you may have to pay taxes and penalties on earnings in your Roth IRA.
From here looks like "$SPX" should work: https://www.schwab.com/resource-center/insights/content/spreading-your-hedge-strategy-volatile-markets
If not, then I'm not sure. I don't use Schwab. But I know in E*Trade pro, you need to enter the "$". And in Webull, the symbol is ".INX". And somewhere it was ".SPX" I'm not sure where.
Try calling customer support, they should help you better. Sorry.
For a company stock, I consider the following at a minimum: Debt/Equity, ROE, 3Y EPS growth, Forward P/E, Schiller P/E, P/FCF, and whether or not the stock pays a dividend and how big it is. Big dividends are bad if you write calls, so I try to avoid big dividend payers.
I want values above the industry/sector averages for as many of those as possible.
All of the above are available on several free stock analysis sites. For example:
You have a covered put position (or synthetic short call position) https://www.schwab.com/resource-center/insights/content/options-strategies-covered-calls-covered-puts
> schwab https://www.schwab.com/execution-quality
> fidelity https://www.fidelity.com/trading/execution-quality/overview
If these numbers are to be believe they're pretty similar. Depending on how you parse the data you can increase or decrease the % by a few points. Schwab gives more detail while RH just says over 100Shares or <= 1999 shares. RH does not list execution speed which kind of sucks.
You have to realize that for every day there are restrictions on how many shares and options can be purchased in AMC, the demand on it is getting suppressed, and that means that the chances of a squeeze happening is waning.
RH is still has restrictions going into tomorrow, latest list here:
https://robinhood.com/us/en/support/articles/changes-due-to-recent-market-volatility/
Updated to allow LIMITED trading on certain equities and options.
GME: 5 total shares (new entry) 100 total new contracta
https://robinhood.com/us/en/support/articles/changes-due-to-recent-market-volatility/
Learn from hands on:
open a TD Ameritrade account and use the paper trading account to trade for some time (ideally 1+ year)
Learn from book:
Derivatives Market is what I used to pass actuarial exam of derivatives. Totally unnecessarily but in case you're interested...
The good new is that pretty much everything you learned about equity options also applies to futures options. The big differences would be the contract sizes, underlyings, and settlement.
Futures options are for a single futures contract. Their multiplier also matches the futures contract, so using /ES as an example which has a multiplier of 50, means that if a option on /ES is quoted at $10.50, the option's premium is $525. Futures contracts also eventually expire like their options. Looking at /CLU21 (September crude oil), the options for it expire on 8/17, three days before the last trading day of /CLU21. Futures contracts can be either physically or financially settled, and /CL is physically delivered. Retail brokers won't let you take or make physical delivery of a futures contract, so you'll be forced to close out of the contract before it expires. So if you got assigned on 8/17 you'd need to close out of the /CL contract soon.
My suggestion would be reading a book about futures to learn more about them. That's really the knowledge gap that you need to fill when it comes to trading futures options. There are two books written by Carley Garner:
The first one is going to be a pretty basic book. It will cover general market concepts you're already familiar with from trading equity options, so that part will be all review for you. But it's still a nice introduction to futures. The other book goes into more detail about futures.
I don't trade without one. Since i started using one, my wins increased exponentially. I was held accountable and was able to keep track of all trades, found a critical mistake I was making and fixed and adjusted my trading plan. I also do the due diligence first witch is equally as important. I also have a due diligence journal. I found have having 2 journals, 1 for trading journal and 1 for my due diligence has helped me stay calm and dialed in. No fomo issues.
Many trading journals online. Here are the two i bought from amazon and very happy with it. I like that they look very similar like a set.
If you really feel like you need a book, then https://www.amazon.com/Wheel-Options-Trading-Strategy/dp/1736082906 covers it in a way that's easy for beginners. Or you can get a physical copy for $4.95 if you sign up for their email list at https://www.rockwelltrading.com/the-wheel-options-strategy-book//.
Or just watch some youtube videos and you should be able to figure it out. The strategy is pretty simple, the hard part is sticking to stocks that are actually worth investing in.
Most brokers will have a risk team that will prevent this from happening in the first place.
Robinhood closes Option Positions an 1 hour early if your account doesn't have enough money to Excercise the Option's Contract.
https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/
A naked put is when you don't have the cash on hand. For example, you would sell a 20P on Ford, you would not have $2000 in your account to pay for it. You may have $2000 in the account but it will be used as margin instead.
Margin for naked puts/calls is roughly ~20%. In the case of Ford, you could sell the 20P for about $500 instead of $2000 because it is on margin.
Robinhood doesn't allow naked options at any options level:
https://robinhood.com/us/en/support/articles/advanced-options-strategies/
> For $5 a month, you get access to Gold’s premium features, and your first $1,000 of margin is included. After your free trial ends, you will begin your first 30-day billing cycle. You will be charged $5 at the beginning of each billing cycle.
> If you invest on margin, you’ll pay 2.5% yearly interest on the amount you use over $1,000. Your interest is calculated daily and charged to your account at the end of each billing cycle.
That has not been an issue in a long time and I've never had an issue with it.
https://us.etrade.com/trade/execution-quality#:~:text=A%20measure%20of%20the%20percentage,93.64%25
Besides wheel there are plenty of other strategies available.
I recommend reading this book, it will give you a rough idea what else to do with options:
https://www.amazon.com/Options-Strategic-Investment-Lawrence-McMillan/dp/0735201978
​
I personally do income trades on ^SPX, the big brother of XSP.
For me the cash settlement and no risk of early assignment is important,
hence index options are my core theta harvesting vehicles.
Spend a few bucks and buy Options as a Strategic Investment. https://www.amazon.com/Options-as-Strategic-Investment-Fifth-dp-0735204659/dp/0735204659/
Read the book. Take notes. Highlight the book.
(Note that the book is the fifth edition. Thus, it is a good book otherwise it would not have been updated so many times.)
Once must read these two intraday ebooks are available on Amazon Kindle and amazon.in.read it carefully this ebook is enough to teach you proper intraday trading.based on price action.
Must read carefully once
Ebook (1) name:- make wealth from intraday trading by Maddy
Ebook(2):-Demand and Supply trading for living by Christopher
Consider getting this book to help you get an idea of what can be written off: https://www.amazon.com/dp/0991472586
Obviously, talk to a tax professional who can help you figure out what you can legally write off. Don't shop for advice on anonymous Reddit boards. Most, if not all, the people are not CPAs or Enrolled Agents. Thus, they have no knowledge of the tax law.
Invest in yourself by getting informed, best $26 you can spend to do that imo:
> That is completely false. Calls offer leverage. You don't have that when simply shorting.
That is completely true.
1 dollar price increase in the underlying will be a 100 USD loss in 100 short shares, and 100 USD loss in a -1 delta call.
Do educate yourself.
https://www.amazon.co.uk/Options-as-Strategic-Investment-Fifth/dp/0735204659
> Calls offer leverage.
Yes, and it's up to you on wether you use it or not. As I said originally.
>Manage your risk with that in mind.
In other words, reserve your capital to cover that naked call to the tune of 100% - you should be at 25% of your margin deployment.
And then yes, you could 're-use' that margin if you convince yourself that pinky-swear that two investments are uncorrelated. This is iffy.
Options strategies work best on non-etf stock, otherwise you could just buy LETFs and make more unless you have alpha. Given that most people here came from trading options first and fell back onto this, they probably do not have alpha or enough to make options investing on etfs better than LETFs, so instead of wheeling VOO/SPY try buying UPRO and getting better profits per loss.
Because options strategies are best on non-etf stocks, primarily due to a lack of LETF and futures, then one should seriously consider mastering value investing first. For anyone who doesn't know value investing is the knowledge on which company is best to invest in. Fall in love with The Intelligence Investor. Make Warren Buffett your god. Whatever it takes to get good at it. But because probably no one here is from /r/ValueInvesting the majority are here is up a creek without a paddle. Learning addition before multiplication makes life a hell of a lot easier.
Yep- which OP does because RH only allows cash secured puts
https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/
you use margin if you’re have instant deposits, and by default, trading options automatically upgrades you to a margin account
https://robinhood.com/us/en/support/articles/options-investing/
instant account = margin
First in first out rule.
You bought 100 shares at $640, then sold 100 shares at $630. The 4 shares you held before were the first ones sold, leaving the 4 newest shares.
They do make it clear, It's on their website, you gots yo read: https://robinhood.com/us/en/support/articles/cost-basis/
These are not puts. This is called a put credit spread. We should do this when we are bullish on a stock. As long as RIOT doesn’t fall below $61 I’ll get $3k in credit. Same for MARA.
Sell to open a call when you have the 100 shares to cover is a CC.
You can also do a "buy write" where it'll buy the shares and sell a call at the same time.
​
Also, schwab has a novel on how to use Street Smart Edge, and tons of free information.
https://help.streetsmart.schwab.com/edge/printablemanuals/EdgeManual.pdf?
https://www.schwab.com/resource-center/insights/content/your-very-first-options-trade
The valuations right now are absurdly high and interest rates are already at rock bottom. I'm not the only one saying this, most experts agree to expect low returns from US equities
>Options as a Strategic Investment
That ^ is the literal title of the book. Check your library.
I bought a copy off of Amazon:
What are we looking for when we google? All I find is a tradinview profile which has all the calls on it he's posting here. tradingview.com/u/Bear2020s/
I can see these in his posts. What is your point? Was there something about these forecasts that were a scam?
Schwab says you’re wrong:
“The wash-sale rule was designed to prevent investors from selling a security at a loss so they can claim tax benefits, only to turn around and immediately buy the same security again.”
Nothing to do with end of the year. It ALSO applies to Dec / Jan so people don’t use that as a way around the rule.
https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales
A current income strategy is concerned with cash flow from capital above all else, including growth. Here's an example of the priorities.
Here's how Schwab describes the difference: Total-return approach: This strategy aims to generate a targeted annual return from all sources (interest, dividends and growth), and may or may not involve touching the original investment. Assets are invested in a diversified portfolio to generate interest, dividends and growth.
Kind Mr. Vega,
Thank you for your correspondence. I hope you find this New Year to your liking as we take the day off from our market watching.
A current-income strategy is focused on generating immediate cash flow from the invested capital. This may be from interest, dividends, or option premium. The A total return strategy aims to generate a targeted annual return from all sources (interest, dividends and growth), and may or may not involve touching the original investment.
People who sell puts or covered calls on stocks like NIO and then get FOMO when the underlying moons and they get capped at max profit would be better suited to utilize a total return approach so that they do not miss out on growth in the prices of the underlying.
I hope this better explains my philosophy.
Best Regards,
Me
I trade options regularly, sell covered calls often, but I am just starting to research theta gang and I am having trouble understanding the advantage of this strategy over buying puts or calls.
What I do not get is that if you incorrectly predict which direction the stock goes, such as setting up a credit put spread spreading thinking it will go up, and it drops below the spread, you end up losing money, both your premium and then out of your pocket.
If you correct predict the movement, you gain, but your gain is capped.
If you had bought puts and you were wrong, you lose nothing other than your cost to buy the contracts but never more, but potentially have some extrinsic value if expiration is far out. However your upside is unlimited; if you were right, your gains are not limited.
I've spent a few hours reading here, on ThetaGang blogs, and places like This Schwab example.
Guess I'm looking for a ELI5 to help me understand what makes Theta Gang the way to go. I'm not buying weeklies and am usually on the LEAP train, so TG being better than weeklies doesn't sell me. I just want to understand so I can add another tool to my options toolbelt.
Thanks in advance.
https://www.schwab.com/resource-center/insights/content/todays-options-market-update
1 day old news but thought we can pick it apart especially the unusual options activity - notably in SPCE ( board favorite), FLEX (cheap tech?), and XME (mining rebound).
also if you want my debit card PIN, SS#, ManBra size, or anything else let me know.
If you are into juggling cats, or sailing lessons, I can hook you up too.
True. But the stated goal, very clear in the presentations, is to eliminate AS MANY positions as feasible. It's not personal, it's just business. Those are the AI/Deep Learning business pitches.
Suggestion: https://hackr.io/blog/artificial-intelligence-courses
In the greeks section, Have you considered using a reactive javascript framework (e.g vue.js or react.js) to make the graphs react to the values, rather than having to press "enter" to resubmit and generate images each time.
e.g here's an example of a reactive (using vue.js) barchart that changes when certain values are manipulated:
The source of this screenshot is a Reddit client called Traddit
Android: https://play.google.com/store/apps/details?id=com.bytmatic.traddit&hl=en_US&gl=US
iOS: https://apps.apple.com/us/app/traddit-for-reddit/id1593956528
In one of Schwager's books there is a guy that simply does not trade if he feels it is not right. Nearly every time I force a trade, and/or let emotion/greed rule me I get burned. I lost all my yearly gains this year in the past 4 months because I got greedy... on the sell side over positioning with hundreds of contracts ATM (Risk be damned).
https://www.amazon.com/Market-Wizards-traders-youve-never/dp/0857198696
I was introduced by this $10 book, it's esoteric but simple. I know the author now
EARN INCOME SELLING STOCK OPTIONS: Wealth Building System https://www.amazon.com/dp/B08B43WCSV/ref=cm_sw_r_apan_glt_WYY1ASYBGYZZ2R2KWC2A
You can transfer your stocks from Robinhood instead of closing them all and trying to buy them back:
https://robinhood.com/us/en/support/articles/transfer-stocks-out-of-your-robinhood-account/
In which case you should have bid more to buy it back. Here's how RH handles it: https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/ look closely at the "what happens" section for expiring options.
Other brokers do it too. I routinely get emails from Tastyworks reminding me that I have options expiring at the end of the week. If I don't have buying power to cover positions that would result from those being exercised, they will close them down for me to mitigate their risk of bagholding.
Are you 100% certain of this? According to https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales, even selling a stock at a loss and then buying an option on the same stock will trigger the wash-sale rule.
That link doesn’t show how a “covered put” and a “cash secured put” is the same thing, as you stated.
http://www.cboe.com/strategies/intermediate/equity/cash-secured-puts-strategy/part1
Two things are at play here. One, if your short strike gets blown through then due to its higher gamma its delta will increase way faster. The deeper it gets through your strike, the faster you lose. By having fewer short legs, this rapid delta increase doesn't hurt as much.
Two, by having fewer short legs, if the market corrects deeply enough (~10-20%) then the put calendar can start turning profitable again. Here's a P&L graph for an SVXY put calendar I have on... this is a low ratio diagonal so it goes green faster but the same idea applies to other names.
https://snipboard.io/5PYOdB.jpg
In your broker's software, make a call or put diagonal where you sell 8 near term options and buy 10 long term options. Then look at the risk graph. It will likely go negative as the market moves through the spread but then turn positive later.
Sure, happy to share. Here's an example where I'm doing double diagonals on SVXY. It's a good one because it mostly goes sideways with the occasional drop when VIX pops.
I typically buy my long leg 140 to 800 DTE. The long will be ATM or slightly OTM. The short leg will either be the same strike (for a calendar) or slightly closer to ATM for a diagonal.
The short leg is interesting. I started out selling 7DTE and taking it off at 0 DTE. As you've probably seen in other threads here, the gamma risk is tremendous. The delta can swing from 10 to 80 in a few minutes with a quick move. I work for a living, so I needed something that didn't require quite so much attention.
I then started selling 12-17 DTE and taking off (rolling) at 7-10 DTE. This was better but still required too much attention. I now sell 30-35 DTE and take off at 20-25 DTE. I still use weeklies because they often allow half strikes and I can roll every week or so.
Anyway, I do both call and put diagonals. As I said above, this works best in a sideways market or one that slowly moves towards one side or the other. If a short leg gets tested, I try to roll it out (and adjust strike) for even or a credit. If I can't roll, I take off that side of the double and book the profit and then look to put it on again at different OTM strikes.
I have a spreadsheet I use to analyze names looking for opportunities. When doing a diagonal with the long 140 days out, I make sure I can pay it off (i.e. reduce it to $0 cost basis) within 90-110 days via the collected premium.
I've included a screen shot showing my results for SVXY. Hopefully you can interpret it. I actually do more than 1-3 units but I adjusted it lower so the focus is on the technique and not the raw $$. Feel free to ask more questions.
Here’s a great book that helped me get started trading options! You can find it on Amazon.
https://www.amazon.com/dp/B09MC93FWL/ref=cm_sw_r_awdo_navT_a_NPE8M4Z3R26T4CGN0X7Y
It’s called The Ten Trade Commandments
They don’t but you can get an idea by splitting the values by the same amount that the stock is split. Here’s a simple explanation I read.
I use Robinhood too and plan on switching to Thinkorswim once I earn $15K+ (you need to have this amount to trade level 3 on TD’s platform, kinda sucks but it’s their rules).
So say you sell the $340/341 c strikes expiring tomorrow AND if SPY ends up breaching $340+ by market close, you will be assigned. What happens is you’ll be assigned the $340c that you sold and the $341c you bought. The net credit would be a loss that is paid by the collateral needed when you opened the trade.
Here’s the Robinhood link for option exercise/assignment: https://robinhood.com/us/en/support/articles/expiration-exercise-and-assignment/
$MVIS. CSP SP $2, DTW 08/21 has a Premium of $.60
If you are on RH: https://robinhood.com/options/chains/f8c84801-d77c-476d-b0bb-7e74fc7c9f5b
Switch to CCs, cause most likely you will be assigned. CC SP $2, DTW 09/18 has a Premium of $.28
The cost will be: $2.00 - $0.80 - $0.28 = $0.92 per share by September 18.
CC it 3 more times, and you will break even... if this thing doesn't go bankrupt yet. Most likely less than 6 months to break even.
Straight line using daily lows. You can draw it on tradingview.com which is free or you can just put it on an excel spreadsheet. I did both because I wanted to calculate the slope since the timeframe is sooooo long and I didn't want to fumble finger the line wrong. Slope happens to be +36.25 cents/trading session.
books like these i prefer the phsyical.. trying to page through ebook is rough. the options playbook on amazon in hardcover is 24$ and its great. simple, concise, easy to reference and spiral bound so it opens and lays flat.
72$ is the best price i could find for this book. amazon = 94
ebay has some for 72 + tax + free shiping comes out to about 76... the 40$ ones are "study guides"
the best price would be Alibris.com + coupon code "NAIL" w/ free shipping comes out to 72
Naked Puts on $nerv
Sold 5 x $5p NERV at 1.25 Cr ($625 Credit)
Strangle on $C ($208 Credit)
Sold 2 x $35p at .63 Cr
Sold 2x $52.5c at .41 Cr
Closed
bought back 1 x $MU 40p Jun 19th expiry at .65 (Sold at 1.3600) $71 Profit
bought back 5 x $CCL 12p May 22 expiry at .30 (Sold at 0.45) $75 Profit
Here's my document if you'd like to look. Everything is censored.
Here's the entire Tax Document. I've censored everything I could, but please let me know if I missed anything confidential.
This book has been a great resource for me. Really explains all the greeks and how they work together and gives you a good idea on how to think about building trades with options.
Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit (Bloomberg Financial) https://www.amazon.com/dp/157660246X/ref=cm_sw_r_cp_api_glt_fabc_CWE00N670CDCY9AHKJ54?_encoding=UTF8&psc=1
option trading by euan sinclair
theres a free pdf of it floating around somewhere...someone linked me to it on here once
his next book is Positional Option Trading: An Advanced Guide
You might want to consider learning about chart reading and how to use indicators, read price action etc before going any further.
Learning technical analysis had been one of the best investments I made.
There are good charting books on Amazon you can get such as this one
Charting and Technical Analysis https://www.amazon.com/dp/1456468693/ref=cm_sw_r_apan_glt_fabc_3GPZSZ5RME8VSMRVE0G5?_encoding=UTF8&psc=1
This was a good read. I bought a copy off of Amazon. However, the one I bought was poorly typeset and was really hard to read.
They scanned in two pages on one printed page, side by side, tall-skinny text in a screwy font.
Be careful NOT to buy this one:
if you're more into the hedged and iv-rv side of the options business, this is a must-read as well: option volatility and pricing
if you masturbate to advanced calculus and ito integrals, this is the book for you hull derivatives
I think for individuals, dynamic hedging costs too much in transaction fees. Even if it wasn't transaction fees, it'd be horrible from a spread perspective.
And the biggest question is how to hedge long gamma vs hedging short gamma . hedging long gamma, you could just place a bunch of limit orders. while hedging short gamma, you have to cross the spread. Or do you set limit orders and wait for a pullback? And even when you're just placing limit orders and waiting for the market to come to you, that doesn't mean you're not getting sniped. Also, there's some illiquid stocks that you can't hedge, if the spread is like $0.50 apart or something.
So yeah, there's a LOT of factors here, that you could write a book about ... oh wait ... Dynamic Hedging
what you're describing right now is Dynamic Hedging.
What it does is it produces returns equal to realized volatility in return for theta. your position is the short -- you're earning theta by paying out realized vol.
here, read this book
Yes, depending on what your definition of advanced is. You should have an intuitive grasp of statistical concepts, how various distributions look, etc.
If I could recommend one book it would be the one below. Short, no fluff, directly to the point, with actionable edges.
https://www.amazon.com/Positional-Option-Trading-Wiley/dp/1119583519
I've got academic and professional background in derivatives (note: this is very different from being a successful trader personally :)), so perhaps my view on its complexity is skewed (ie I think "anyone with basic understanding of options will get this").
But having gone through probably a dozen books, this is the one I found most useful and PRACTICAL. Minimal "advanced" math btw.
Ps: libgen is your friend if you want to "try out" a digital copy of the book ;) but please support the author if you find it useful.
Assume you found it, but “this one” (I mis-titled slightly in my earlier response): https://www.amazon.com/Profiting-Iron-Condor-Options-Strategies/dp/0134394607
Again - I LOVE the book, and re-read it often. I just think it takes more of a bet-the-farm on an even-further-out delta, fewer-and-further between trades approach that I think maybe my account size is too small for. ;)
This book covers strategies in that vein in some detail:
https://www.amazon.com/Enhanced-Indexing-Strategies-Utilizing-Performance/dp/0470259256
It's been a long time since I read it, but if I remember correctly their claim was that you had a better rate of return than passive indexing. Significant drawdowns occurred in their backtesting, which predated the 2008 financial crisis. However these drawdowns weren't any deeper than the buy and hold strategy experienced, and recovery was quicker.
I've often wondered if the options market priced these strategies into irrelevance since this book came out, but I've never done the work it would take to find out. If it worked as well as the author claimed you'd think more people would be talking about it.
At any rate, this book is probably a good starting point for you if you want to chase this.
You need to go to Twitter, get on FinTwit and educate yourself. Talk to some professional option traders and asked them if EDGE is real. They will tell you it's the most important thing.
This isn't a damn ad. Here's another great book by Ed Thorp that will teach to trade with EDGE.
I just read Covered Calls for Beginners (Kindle Unlimited) and thought it laid out the topic pretty well. It's only one part of the equation but maybe you are looking for information on covered calls as well.
I actually bought a book that has a focus on trading volatility if you're interested in learning more: https://www.amazon.com/gp/product/155738486X/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1
This book talks about exactly that: https://www.amazon.com/gp/product/0134807529/ref=ppx_yo_dt_b_asin_title_o09_s00?ie=UTF8&psc=1
You can read this book: https://www.amazon.ca/Option-Volatility-Pricing-Strategies-Techniques/dp/155738486X
And apply for this group: www.predictingalpha.com
If you do these two things you will be ahead of 95% of retail traders already!
Yes the Premium won't adequately compensate you for the risks you are taking. I'm not a wheel fan, I am a fan of selling puts on Stocks and ETFs that are in a uptrend. Selling very short term calls on stocks that are in a downtrend.
Recommend trading book that's the real deal.
Wheel Gang (Android) https://play.google.com/store/apps/details?id=com.gmail.essentialadityapandey.wheelgang
Wheel Tracker (Android) https://play.google.com/store/apps/details?id=com.flutter.Wheel_Tracker
I used to be much more into standard technical analysis methods that are commonly touted, but admittedly I’ve moved away from them now for the most part and have been learning more about and following volatility theory with reasonable success.
But other than that, aside from some of the resources others have mentioned for TA, I found Adam Khoo’s videos on YouTube about technical analysis to be helpful when I was a new trader a few years ago.
When trading with TA, there is absolutely no difference between being lucky, and being smart. Quant firms were using machine learning esque techniques on nearly perfect data sets to eliminate any edge gaining from TA patterns that Dow created in the 1930's as early as the 1980's.
Highly recommend this book if you still think TA is of any use at all. It's not mathematically rigorous (important for TA users) but it's direct and to the point:
https://www.amazon.com/dp/B0036894XC/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1